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When the Price of a Pizza Decreases from $12 to $10

Question 34

Multiple Choice

When the price of a pizza decreases from $12 to $10, it is definitely the case that the


A) substitution effect means people buy more pizza.
B) quantity demanded of pizza will not change.
C) income effect means people buy less pizza.
D) None of the above answers is correct.

Correct Answer:

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